Issue - meetings

To consider the report of the Head of Treasury Services.

Scrutiny Committee – Resources considered the report at its meeting on 24 November 2010 and comments will be reported.

(Report circulated)

The report of the Head of Treasury Services was submitted, advising Members of the overall projected financial position of the General Fund Revenue Budget after six months, for the 2010/11 financial year.  He identified the main variances and issues influencing the projected outturn figure.

Members thanked officers for successfully delivering a very challenging budget and requested clarification on various issues.  In response to a request, the Head of Treasury Services agreed to provide a year-on-year comparison in respect of the debt situation in future years, though noting that the current accounting system had only been in place for 12 months.

Scrutiny Committee – Resources considered the report at the meeting of 24 November 2010 and the support of members was noted.

Executive recommended that Council approve:-

(1)     the General Fund forecast financial position for the 2010/11 financial year;

(2)     the HRA forecast financial position for 2010/11 financial year;

(3)     the outstanding Sundry Debt position as at June 2010; and

(4)     the Statutory Performance Indicator BVPI8 for creditors’ payments.

The report of the Head of Treasury Services was submitted, advising Members of the overall projected financial position of the General Fund Revenue Budget after six months, for the 2010/11 financial year.  He identified the main variances and issues influencing the projected outturn figure.

Members thanked officers for successfully delivering a very challenging budget and requested clarification on various issues.  In response to a request, the Head of Treasury Services agreed to provide a year-on-year comparison in respect of the debt situation in future years, though noting that the current accounting system had only been in place for 12 months.

Scrutiny Committee – Resources considered the report at the meeting of 24 November 2010 and the support of members was noted.

RECOMMENDED that Council approve:-

(1)     the General Fund forecast financial position for the 2010/11 financial year;

(2)     the HRA forecast financial position for 2010/11 financial year;

(3)     the outstanding Sundry Debt position as at June 2010; and

(4)     the Statutory Performance Indicator BVPI8 for creditors’ payments.

(Report circulated)

To consider the report of the Head of Treasury Services – report circulated

The Head of Treasury Services presented the report advising Members of the overall projected financial position of the General Fund Revenue Budget after six months, for the 2010/11 financial year.

The Head of Treasury Services advised that the Service Committee budgets showed a forecast underspend of £372,890 (2.15%) against a revised Service Committee Net Expenditure budget of £17,356,360 and an overall underspend of £32,356 against the General Fund Expenditure. The Scrutiny Committee - Community under spend was £416,280 and that of the Scrutiny Committee - Economy was £265,170.

The Scrutiny Committee - Resources had an over spend of £308,560 due to a reduction in Housing Benefits subsidy mainly in respect of Rent Allowances which was projected to be £223,580. Also expenditure had been incurred on the Local Government Review relating to the Judicial Review and the subsequent work to identify a date for the required elections.

Members were updated on the Housing Revenue Account, the outstanding sundry debt and the creditor payments performance. The forecast General Working Fund balance at 31 March 2011 was £3,222,806 and equated to 17.9% of the General Fund net expenditure.

In response to Members’ questions, the Head of Treasury Services outlined the current position with regards to the Council’s investment in Icelandic Banks and advised that the court cases were on going. Although there was a court hearing in January 2011, he envisaged that it could be at least two years before the Council might receive any funds from these investments.

Housing Benefits overpayments were largely due to claimants’ change of circumstances which lead to a lower benefit entitlement once a reassessment was made. The Council recovered over 90% of this overpayment.

The Head of Contracts and Direct Services clarified that the Council did not have any direct contracts with ROK.

The Scrutiny Committee - Resources supported the report and recommended approval by Council of the:-

(1)             General Fund forecast financial position for the 2010/11 financial year;

(2)             HRA forecast financial position for 2010/11 financial year;

(3)             outstanding Sundry Debt position as at September 2010; and

(4)             Statutory Performance Indicator BVPI8 for creditor’s payments.

(Report circulated)